Medicaid Work Requirements

On February 12, 2021, the Biden Administration made its first move to revoke approval for Medicaid work requirements. CMS Acting Administrator Elizabeth Richter sent a letter to the eight (8) states that had previously received approval for a Section 1115 waiver to implement work requirements, including Arizona, Arkansas, Georgia, Indiana, Nebraska, Ohio, South Carolina, and Wisconsin.

Additionally, CMS sent separate letters to states, including Arkansas, rescinding the letter sent by former CMS Administrator Seema Verma in January of this year that would have allowed the state to keep work requirements in effect for nine (9) months after they were rescinded. Instead, CMS will now provide states with an opportunity to request a hearing before determining to suspend, modify or withdraw the waiver.

And, on February 22, 2021, the Biden administration requested the Supreme Court to cancel an upcoming hearing of the consolidated cases of Azar v. Gresham and Arkansas v. Gresham. These cases address whether states may attach work requirements to their Medicaid programs, specifically as they were applied in Arkansas and New Hampshire. Oral arguments were scheduled for March 29, 2021, however on March 11, 2021, the Supreme Court agreed to remove the case from the docket, making it unclear whether the case will be heard in the future.